Business Mentor Tip #81 – Rate your scalability

I had a very enjoyable interview with John Holt (co-founder of HR Software provider Sonar6 which was sold to NASDAQ listed company Cornerstone On Demand) for my regular NZ Business Magazine column. He said many wise things.

One was about a key factor a potential buyer would be looking for in a business to purchase. And that was scalability. Quick Wikipedia definition coming up:

Scalability is the ability of a system, network, or process, to handle a growing amount of work in a capable manner or its ability to be enlarged to accommodate that growth.

Or… does your business model support rapid and sustainable growth?

An interesting question and one I think every business owner should ask themselves right now. What is your model for growth? And how will a future potential buyer be able to take your model and add it to their own for their own advantage?

Love to hear your comments on what makes a business scalable.

From the desk of liber8yourbusiness. Businses mentors and experts in small business exit strategies.